Sarepta sold part of its Arrowhead stake to help fund the milestone payment, while also outlining plans to release early data from two genetic therapy programs in the second half of 2025.
Shares of Sarepta Therapeutics hit their highest level in nearly a month on Wednesday after the company said a safety review and enrollment progress in its Phase 1/2 trial of SRP-1003 for type 1 myotonic dystrophy (DM1) triggered a $100 million milestone payment to Arrowhead Pharmaceuticals.
Sarepta’s stock jumped 8.5% to close at $20.4 on Wednesday, with an additional 1.6% gain in after-hours trading.
The payment was triggered after Arrowhead reached the first of two predetermined enrollment targets in the study, following a review of the safety data.
SRP-1003 is an experimental RNA interference therapy being developed for type 1 myotonic dystrophy.
To help fund the milestone payment, Sarepta sold 9.3 million shares of Arrowhead in a privately negotiated block trade, generating at least $174 million in gross proceeds.
Arrowhead will also redeem 2.7 million shares from Sarepta for $50 million, prefunding half of the milestone obligation.
The company plans to share early results from the SRP-1003 trial and its facioscapulohumeral muscular dystrophy (FSHD) program in the second half of 2025.
On Stocktwits, retail sentiment was ‘bullish’ for Sarepta Therapeutics and ‘extremely bullish’ for Arrowhead Pharmaceuticals, with 24-hour message volumes surging 872% and 122%, respectively.
One user remarked that upgrades for Sarepta Therapeutics keep coming, adding that the market may be underestimating how quickly sentiment can shift when major investors get involved.
Another said the stock could still rise tenfold within a year if European approval comes through and with multiple trials underway, calling it a bargain and urging others to buy before the current discount disappears.
While Sarepta’s stock has declined 83.2% so far in 2025, Arrowhead’s stock gained 6.3% over the same period.
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